Commercial Office Space Landlords in Lagos are concerned about the fact that the recession, coupled with unstable monetary policy, will deter foreign investors from the market, and this will increase the already high supply of prime office space in Victoria Island and Ikoyi.
As a result of the uncertainty that stems from this economic recession (the worst in 29 years), and the reduction in foreign direct investment, we anticipate increased interest in flexible workspace solutions.
The current state of the economy is an incentive for both local and international companies doing business in Nigeria to utilize flexible office/serviced office centres, where they do not have to sign-up to two year leases payable in full, in advance, with ancillary legal, agency and service charges. With a serviced office, clients can enter into quarterly, biannual, or annual contracts with flexible payment terms, while the market remains unpredictable. In addition, companies can easily expand or contract their needs depending on business needs and performance.
By utilizing serviced offices, companies will also be taking advantage of reduced staff salaries, as office space providers like Legacy, provide front desk officers, dedicated centre managers, security operatives, cleaners, and IT support.
Collaboration is a key additional feature of flexible workspace solutions. For example, consulting companies can collaborate with tech companies, law firms, accountancy practices, among others, all within the same space. Of course, these companies have the choice of when to collaborate and when to exercise their rights to privacy.
Essentially, serviced offices provide an opportunity for companies doing business in Lagos and Nigeria to de-risk their investments and operations, while also saving cost and enjoying other benefits.
